Money remains a conversational taboo for many Brits, but if we want a country of investors, we have to talk about it, writes Interactive Investor senior manager Camilla Esmund in today’s Notebook
The money taboo
Talk Money Week, which is fast approaching, aims to get more of us to speak openly about money. I was speaking to a friend the other day who said they were frustrated that whatever you read about finance and investing, often it still doesn’t really “tell you enough”, or – and probably worse – you end up more confused than when you started.
Money is still an intimidating subject for many, investing perhaps even more so. When working with a peer-learning organisation last year, I heard the phrase “investing doesn’t feel open to us” repeatedly. But more of us are becoming less afraid to talk about these topics. Every year, Interactive Investor does a flagship piece of research, asking people if they regularly discuss retirement and savings with their family and friends, that tracks this. And this year’s findings showed progress.
Overall, 52 per cent said they talk regularly to their family, compared to 47 per cent the year before. Meanwhile 37 per cent said they talk regularly to their friends, compared to 34 per cent the year prior, and it was those under 40 who said they’re especially open discussing their finances, with 56 per cent saying they talk regularly to their family about retirement and savings, and 47 per cent talking regularly to friends (an increase from 50 per cent and 43 per cent, respectively).
This is encouraging. There’s so much power in people sharing their experiences and, importantly, their mistakes. One of our financial experts at II once wrote a candid article on his first experience with unexpected credit card debt, which he came face to face with at the age of 18. Unsurprisingly, it really resonated. It was relatable; it made many of us breathe a sigh of relief that we aren’t expected to ‘get it right’ all of the time. Even the pros.
Financial literacy isn’t a nice-to-have, it’s a necessity. Having access to jargon-free, accessible information is one crucial part of it – but it won’t be enough to really make a broad difference until we can normalise open and honest conversations about money. And none of us should be afraid to ask questions. Plenty of experts do, and they lead by example.
What investors like you are talking about
II recently launched a new community app and it’s been great to see a real buzz already; there’s been discussions about everything from portfolio diversification, to pensions vs ISAs, through to earnings season. But it’s also been a great way to keep tabs on what those in the investment world are most interested in – or concerned about. Tesla, Starbucks and Crowdstrike are some of the companies promoting particularly active threads, while UK bank stocks, US tech and AI plays are also coming up frequently.
Looking more at the personal finance side of things, we’ve seen users share their thoughts around the looming Autumn Budget, discussing possible policy changes and taxes. There’s also some chatter about interest rates with users sharing their thoughts on where rates might be in 12 months’ time.
But, and this cannot be emphasised enough, investing is for everyone and should be open to everyone – as should the conversation. So finance noobs please join the discussion!
Quote of the week
“Leadership used to be about muscle, today it’s about brain, but moving forward it’ll be about heart. What you will not replace, no matter how great the algorithm is, is what makes us uniquely human, which is courage, connection, and empathy.“
Brene Brown
A recommendation
I recently started re-watching the beloved Rocky movies. A great boost to kick off the week ahead; after all, there’s always something that Rocky can teach us about resilience in all areas of life: embracing setbacks and continuously learning and moving forward.
Some podcasts to check out this week
If you’re following the upcoming US election, or want to know more, I highly recommend checking out the Newsagents podcast, specifically the Q&A USA Election Special. In each episode, you’re not just getting deep dive into the main headlines each week, you’re also getting some healthy debate. The podcast doesn’t just look at what’s happening, it explains why it’s happening, and these Q&A episodes are especially brilliant. On the subject of podcasts, stay tuned for II’s upcoming ‘On the Money’ podcast (out every Thursday) on the Autumn Budget. We’ll be breaking down what the changes mean for your finances – without the political jargon.